Bank of America/Merrill Lynch cuts OTE target to 12.50 euros from 13.50 euros previously, after adjusting down its 2017 estimates and cutting its free-cash-flow numbers post third quarter. The buy rating on the stock is maintained.

“We are big believers in CAPEX so although we cut our FCF numbers post new guidance and are adjusting down 2017 estimates post Q3, we continue to see the value in OTE,” says.

It believes the share should move, if and when it will start paying significant dividends. “This, we believe, is more of a 2018 story when the government plans to advance to sell its stake. Trading at 4.9x 2018E EV/EBITDA, we believe OTE shares remain attractive.”

OTE strength stems from a) Greece wireless market rationalization which was evident across 2017; b) stable fixed-line competitive dynamics for now; c) investments in vectoring technology; d) high single digits growth in 2017/18E for premium services, including BBI and PTV, according to BofA.